Israeli Prime Minister Ehud Olmert says the idea of "Greater Israel"-- the main motto of the Zionist founders of the Israeli regime-- is dead.

"'Greater Israel' is finished. There is no such thing as that anymore. Whoever talks in those terms is only deluding himself," the prime minister admitted at a cabinet meeting.

"It doesn't help Israel. The international community has changed its perspective ahead of the possibility of Israel becoming a bi-national state," he said.

" I believed that the land from the Jordan River to the Mediterranean was all ours since in every place there that is excavated, there is evidence of Jewish History. But finally, after a lot of suffering and misgivings, I came to the conclusion that we need to share the land with whom we are residing if we don't want to become a bi-national state," Olmert said.

The premier also warned that the clock is "not ticking in Israel's favor."

The remarks came as the Israeli regime faces one of its worst political crises in its history. While Olmert is likely to be indicted over his corruption cases, the ruling Kadima Party is grappling with a power struggle.

The 33-day war against Lebanon during which Hezbollah managed to prevent the regime from achieving its goals, also dealt a serious blow to Israel.